Piramal Enterprises announces demerger and simplification of corporate structure

The Board of Directors of Piramal Enterprises, in their meeting held today, approved a composite scheme of arrangement providing for the demerger of the pharmaceuticals business from PEL and simplification of the corporate structure to create two industry-focussed listed entities in financial services and pharmaceuticals, the company notified in a statement.

Speaking in this regard, Ajay Piramal, Chairman, Piramal Group, said, “Over the years, Piramal Enterprises has grown multi-fold with diverse businesses under one listed holding company structure. In line with our stated strategy, the Board has today approved the demerger and simplification of our corporate structure, to create two independent listed entities in financial services and pharmaceuticals, with a leadership position across the business segments they operate in. It will firmly empower both entities to be future-ready and enable them to independently pursue their growth strategies with sharper focus and identity.

The statement also said, “Piramal Enterprises will get transformed into a large listed diversified NBFC, focused on retail and wholesale financing, with a consolidated loan book of approximately Rs 65,000 crores. Our retail lending platform will be digitally-led, that will serve the financing needs of the under-served customers in the ‘Bharat’ market. With the recent acquisition of DHFL, the wholly-owned housing finance housing subsidiary has been significantly scaled to become one of the largest HFCs of our country, focused on affordable housing finance.”

Piramal Pharma will be a large India-listed pharma company with proven capabilities in Contract Development & Manufacturing, global distribution of complex hospital generics, and a large geographic footprint in the consumer products market in India. PPL’s Contract Development and Manufacturing (CDMO) business is one of the top three in India and the 13th largest globally. PPL’s Complex Hospital Generics and India Consumer Healthcare businesses are well-positioned with differentiated products and business models, added the statement.